Wp(C) v. Rajan

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN WEDNESDAY, THE 27TH DAY OF SEPTEMBER 2017/5TH ASWINA, 1939 WP(C).No. 30914 of 2017 (L) ---------------------------- PETITIONER(S): ------------- V. RAJAN, VAIKKALERI HOUSE, MEPPAYIL P.O., VATAKARA. BY ADVS.SRI.P.RAGHUNATH SRI.PREMJIT NAGENDRAN RESPONDENT(S): -------------- 1. INCOME TAX OFFICER, WARD 2[2], AAYAKAR BHAVAN, CALICUT. WARD 2[2], AAYAKAR BHAVAN, CALICUT. 2. PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, CALICUT - 673 001. AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, CALICUT - 673 001. 3. COMMISSIONER OF INCOME TAX , AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, CALICUT - 673 001. AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, CALICUT - 673 001. 4. CENTRAL BOARD OF DIRECT TAXES, NEW DELHI, REPRESENTED BY CHAIRMAN, CBDT, NEW DELHI - 11000001. CBDT, NEW DELHI - 11000001. 5. UNION OF INDIA, MINISTRY OF FINANCE, NEW DELHI, REPRESENTED BY SECRETARY, MINISTRY OF FINANCE, NEW DELHI - 11000001. REPRESENTED BY SECRETARY, MINISTRY OF FINANCE, NEW DELHI - 11000001. BY SRI.K.M.V.PANDALAI, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27-09-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ---------------------------- APPENDIX PETITIONER(S)' EXHIBITS-----------------------EXHIBIT P1 PHOTOCOPY OF ASSESSMENT ORDER DT.25.09.2009.EXHIBIT P2 PHOTOCOPY OF ORDER U/S 158BFA[2] DT.25.09.2009.EXHIBIT P3 PHOTOCOPY OF "DIRECT TAXES DISPUTES RESOLUTION SCHEME, 2016".EXHIBIT P4 PHOTOCOPY OF DECLARATION IN FORM 1 UNDER RULE 3[1] OF THE RULES IN RESPECT OF EXT.P1.EXHIBIT P5 PHOTOCOPY OF INTIMATION DT.28.02.2017 RE:EXT.P3 DECLARATION.EXHIBIT P6 PHOTOCOPY OF CIRCULAR NO.42 DT.23.12.2016.EXHIBIT P7 PHOTOCOPY OF JUDGMENT IN W.P[C] NO. 6417/2017 DATED 26.05.2017.RESPONDENT(S)' EXHIBITS----------------------- NIL TRUE COPY EL P.S. TO JUDGE K. VINOD CHANDRAN, J.----------------------------------W.P(C). No.30914 of 2017 [L]----------------------------------Dated this the 27[th] day of September, 2017JUDGMENT The petitioner is aggrieved with Ext.P5 orderfor reason of the application filed under theDirect Taxes Dispute Resolution Scheme, 2016 asbrought out in Finance Act, 2016. The rejection ofthe application made by the petitioner was on thebasis of the clarification issued by the CentralBoard of Direct Taxes as per Ext.P6, whichindicated that if the demand is confined to thepenalty, there can be no consideration under theCircular. This Court had specifically consideredthe issue and by Ext.P7 found that theinterpretation is not correct. Therein also penaltyalone was the subject matter of consideration before the Commissioner under the Scheme, which wasdirected to be considered afresh. In such circumstances, Ext.P5 is set aside. Theconsideration shall be made in accordance with theScheme as directed in Ext.P7 judgment withinperiod of six weeks from the date of receipt of acertified copy of this judgment. The writ petition would stand disposed of. Sd/- K. VINOD CHANDRAN, JUDGE. //True Copy// P.A. to Judge sp/27/09/17